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UNCLAS SECTION 01 OF 02 BERLIN 001609
SENSITIVE
STATE FOR EEB/IFD/ODF (LEATHAM, ALEXANDER), SCA/A (BRADY),
NEA/IPA (LENTZ), EUR/CE (HODGES, SCHROEDER)
TREASURY FOR SMART, ICN (NORTON), IMB, OASIA
SIPDIS
E.O. 12958: N/A
TAGS: EAIDECONEFINPGOVPRELGM
SUBJECT: GERMANY'S NEW DEVELOPMENT MINISTER CONNECTS
DEVELOPMENT WITH SECURITY POLICY
BERLIN 00001609 001.3 OF 002
¶1. (SBU) SUMMARY: Dirk Niebel (FDP) was an odd pick as
Germany's new Development Minister -- he had no experience in
international development, and had previously suggested
abolishing the Development Ministry. Now in charge, Niebel
has big shoes to fill, following on the heels of Heidemarie
Wieczorek-Zeul (SPD). Important differences with his
predecessor are already apparent: he would like to integrate
Germany's development policy more closely with its foreign
and security policy, including in Afghanistan. Niebel is
also a firm believer in free markets, and sees a successful
conclusion of the Doha Development Round as critical for
developing countries. For Niebel, nothing is sacrosanct: he
intends to phase out German aid to China, which he regards as
no longer a developing country. With the ministry under new
management, there may be additional opportunities for
collaboration between the United States and Germany on
development policy. END SUMMARY.
DIRK WHO?
---------
¶2. (SBU) Dirk Niebel struck many as an unlikely choice for
Development Minister in the coalition government of
Chancellor Merkel's Christian Democratic Union
(CDU)/Christian Social Union (CSU) and Guido Westerwelle's
Free Democratic Party (FDP) (the "Black-Yellow" coalition).
A Hamburg native, Niebel's previous work experience includes
eight years as a paratrooper in the German armed forces, and
five years as a placement officer at a job center in
Heidelberg. In 1998, he was elected to the Bundestag (lower
house of Parliament), where he became caucus spokesperson for
labor market policy and a member of the Labor Committee. In
2005, FDP Chairman (and current Foreign Minister) Westerwelle
tapped him as FDP Secretary General -- a position he held
until Chancellor Merkel appointed him Development Minister in
November 2009. As Secretary General, Niebel had called for
the elimination of the ministry he would later head, the
Ministry for Economic Cooperation and Development (BMZ).
(NOTE: This option appears off the table for now. END NOTE)
Niebel succeeds Heidemarie Wieczorek-Zeul of the Social
Democratic Party (SPD), who headed BMZ for a record 11 years.
CONNECTED SECURITY
------------------
¶3. (SBU) In a December 18 meeting with Ambassador Murphy,
Niebel said he intended to "make some changes at BMZ." One
such change is linking development policy more closely with
foreign and security policy -- a concept he referred to as
"connected security." Niebel told the Ambassador he planned
to coordinate very closely with Foreign Minister Guido
Westerwelle, and that he foresaw much greater cooperation
between BMZ and the German military in northern Afghanistan.
(NOTE: Days prior to the meeting with Ambassador Murphy,
Niebel had announced BMZ would increase civilian assistance
to Afghanistan by around 50 million euros, bringing Germany's
2009 total to over 260 million euros. END NOTE)
¶4. (SBU) In a separate meeting several months ago,
Chancellery National Security Advisor Christoph Heusgen had
told us that BMZ under a Black-Yellow coalition would be less
wedded to "old" notions of doing development work. This
assessment now appears to be accurate. Wiezcorek-Zeul had
ensured that German development staff worked and lived in
separate compounds, away from provincial reconstruction teams
(PRTs) and other bases from which the Ministry of Defense,
Ministry of Foreign Affairs and Ministry of Interior
operated. She even refused to ride in German military
vehicles when she visited Afghanistan. This kind of
separation seems likely to end under Niebel, both physically
and substantively.
¶5. (SBU) Among other ideas Niebel brings to the table is a
plan to partner with third country donors like Israel on
projects in developing countries. Niebel told the Ambassador
that Israel,s expertise in border protection could be shared
BERLIN 00001609 002.3 OF 002
with African countries, for example. By teaming up with
Germany, Israel could participate in certain capacity
building projects where it might not otherwise have access.
LAISSEZ-FAIRE DEVELOPMENT
-------------------------
¶6. (SBU) Shortly after becoming Minister, Niebel remarked
that his overall development philosophy was helping recipient
countries help themselves. He regards the successful
conclusion of World Trade Organization's (WTO's) Doha
Development Round as especially meaningful for developing
countries. "There is more money being lost by trade barriers
than all the development aid can make up for," he said. This
perspective marks a noteworthy departure from the approach of
Wieczorek-Zeul, dubbed "red Heide" for her affiliation with
the Young Socialists years ago.
¶7. (SBU) Niebel also opposes a proposed tax on international
financial transactions to fund development assistance. Both
Chancellor Merkel and Wieczorek-Zeul had championed the
so-called "Tobin tax." Citing "differences" within the
government on the issue, Niebel has reportedly ended BMZ's
participation in an international working group on the
proposed tax.
¶8. (SBU) Niebel is keen to reorient BMZ's assistance.
Reflecting on comments made publicly in his first days as
Minister, Niebel told Ambassador Murphy that Germany planned
to stop providing development assistance to China, currently
one of the largest recipients of German aid. He added that
China was "only a developing country when it came to climate
change negotiations." BMZ will carry out its existing aid
obligations to China only through next year. The decision
has proved controversial, as BMZ's assistance to China had
reportedly benefitted German companies doing business there.
TRAVEL PLANS
------------
¶9. (SBU) Niebel said he planned to spend the holidays in
Israel. (NOTE: Niebel is a long-standing member of the
German-Israeli Society. END NOTE) His first official travel
to the developing world will be a late January trip to
"Rwanda, eastern Congo, Mozambique, Afghanistan and Asia."
The Ambassador suggested Niebel visit Washington to meet with
new USAID Administrator Shah once confirmed. Niebel said he
would coordinate dates for the visit with the Embassy.
COMMENT
-------
¶10. (SBU) Niebel takes charge of BMZ at a challenging time:
Germany will run its largest post-war deficit in 2010, and
pressure to rein in spending will strain every ministry.
Niebel's close relationship with Westerwelle should be an
asset, however, and could help minimize cuts on key
priorities. The close relationship will also facilitate
Niebel's vision of integrating development policy with
foreign and security policy. Since taking over at BMZ,
Niebel has increased assistance to Afghanistan, where Germany
was already the third largest donor, and appears open to
doing more in support of an integrated strategy in the north.
An early meeting between the new USAID Administrator, who
oversees the world's largest aid budget, and the new German
Development Minister, who oversees the world's second
largest, could be an important step in building stronger
U.S.-German cooperation on our top development priorities.
DELAWIE